If, for a given percentage increase in price, quantity supplied increases by a proportionately larger percentage, then supply is
A)unit elastic.
B)perfectly elastic.
C)relatively inelastic.
D)elastic.

Question

Quizplus · Accepted Answer

When quantity supplied increases by a proportionately larger percentage than the percentage increase in price, it is an indication of a relatively responsive change in quantity supplied. This kind of responsiveness is referred to as elasticity, which means that supply is elastic in this scenario.

If, for a Given Percentage Increase in Price, Quantity Supplied